SEC’s whistleblower program gains momentum
On November 15, 2013, the SEC released its third annual Whistleblower Report to Congress. According to the report, In the fiscal year 2013, the SEC paid four major awards, one of which was for over $14 million for information leading to an enforcement action that recovered substantial investor funds. Three other payments totaling $832k were made for information regarding a bogus hedge fund.
The report states that the number of complaints and tips increased from 3,001 in the 2012 fiscal year to 3,238 in 2013. The three most common complaints or tips were about corporate disclosures and financials, offerings fraud, and manipulation. The number of FCPA-related tips also rose, from 115 to 149.
